// BREAK-EVEN CALCULATOR

Break-Even Calculator

Find the units and revenue needed to cover fixed costs, given a price and variable cost per unit.

// INPUTS
One-time or periodic costs that don't vary with units.
Costs that scale with each unit sold.
// OUTPUT
BREAK-EVEN UNITS
1,250
BREAK-EVEN REVENUE₹12,50,000
CONTRIBUTION PER UNIT₹400
CONTRIBUTION MARGIN40.00%

// FORMULA

// FORMULA
BreakEvenUnits = FixedCosts / (Price − VariableCost)
BreakEvenRevenue = BreakEvenUnits × Price
Price − VariableCost is the contribution per unit.

// EXAMPLE

// WORKED OUT
Fixed costs ₹5,00,000; price ₹1,000; variable cost ₹600:
  Contribution per unit = ₹400
  Break-even units = 500000 / 400 = 1,250
  Break-even revenue = 1,250 × 1,000 = ₹12,50,000

// WHAT THIS MEANS

Break-even is the moment a business stops bleeding fixed costs and starts contributing to profit. The contribution margin — what each unit earns after covering its own variable cost — is the lever. A higher margin means break-even arrives faster; a lower margin means more volume is needed.

// FAQ

Are taxes considered?+
No — the calculator finds operating break-even. Add expected taxes separately if you need post-tax break-even.
What if my variable cost is higher than price?+
Every sale loses money, so there is no break-even — you would need to raise price or reduce variable cost first.

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